Credit Suisse '2023 Global Wealth' Report
1.25 Million Korean Millionaires... Over 2 Million in 5 Years
The number of Korean 'millionaires' has been found to exceed 1.25 million. This figure is 40,000 fewer than the previous survey and accounts for 2% of the world's millionaires.
According to the '2023 Global Wealth Report' published on the 15th (local time) by investment bank Credit Suisse (CS), the number of Koreans with assets exceeding 1 million US dollars (approximately 1.34 billion KRW) last year was counted at 1,254,000. The total number of millionaires worldwide was 59,391,000, a decrease of 3,508,000 from 62,899,000 a year earlier.
The country with the largest decrease in millionaires was the United States. In the US, 1.77 million millionaires disappeared. This was followed by Japan (466,000), the United Kingdom (439,000), Australia (363,000), Canada (299,000), and Germany (253,000).
This aligns with the forecast of a 'Richcession,' where high-income groups face difficulties comparable to low-income groups due to economic changes after COVID-19. 'Richcession' is a newly coined term combining 'Rich' and 'Recession.' The main cause of the decrease in assets among high-income groups is attributed to the downturn in various asset markets, including stocks.
On the other hand, Brazil added 120,000, Iran 104,000, and Norway 104,000 new members to the millionaire club.
Korea ranked 10th with a decrease of about 40,000 compared to last year. However, the report predicted that by 2027, five years later, the number of domestic millionaires will increase by 64% to 2,059,000, surpassing Italy and rising one rank to 9th place.
1.1 Million Korean Adults in the Global Top 1%... 18.55 Million in the Top 10%
Based on asset holdings, 1,106,000 Korean adults belong to the 'Global Top 1%', and 18,559,000 adults belong to the 'Global Top 10%'. The average asset size per Korean was $230,760 (approximately 310 million KRW), and the median was $92,720 (approximately 120 million KRW).
As of the end of last year, the average asset size per adult worldwide was $84,718 (approximately 110 million KRW), a 3.6% decrease from the previous year. The total asset size also decreased by $11.3 trillion (approximately 1,511.7 trillion KRW, 2.4%) to $454.4 trillion (approximately 67 quadrillion 9,872 trillion KRW).
The global asset size decreased for the first time since the 2008 financial crisis due to inflation, rising interest rates, and currency depreciation caused by the strong US dollar.
CS publishes the report annually by estimating the net worth of adults in US dollars, mainly focusing on real estate and financial assets, based on household asset surveys conducted by governments worldwide.
Half of Koreans Say "I'm Not Middle Class"... Aspirations Set at Top 10%
Meanwhile, according to the '2022 Middle-Class Report' published by NH Investment & Securities 100-Year Life Research Institute, nearly half (45.6%) of Koreans who consider themselves middle class actually do not see themselves as middle class. They responded that "a monthly income of 6.86 million KRW for a family of four is required to be middle class."
Regarding consumption levels, they answered that "being able to spend 4.27 million KRW per month is necessary to be middle class." This corresponds to the consumption level of the top 9.4% of Korean household incomes, which is over 1 million KRW more than the average living expenses (3.14 million KRW per month) of an actual four-person middle-class household. In other words, one must enjoy a consumption level of about the top 10% of income earners to recognize themselves as middle class.
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